China sets timeline to scrap foreign stake limits for auto sector

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BEIJING, April 17 (Reuters) - China’s state planner said on Tuesday the country will scrap foreign ownership limits on commercial vehicle firms in 2020 and lift restrictions on passenger vehicle firms in 2022.

China will also scrap foreign ownership limits on new energy vehicle firms in 2018, the National Development and Reform Commission (NDRC) said in an online statement.

The rule change could provide benefical for U.S. electric vehicle maker Tesla, which has been seeking to set up a wholly owned plant in Shanghai.

China will also scrap all foreign ownership limits in the ship and aircraft manufacturing industries in 2018, the NDRC added. (Reporting by Beijing Monitoring Desk; Editing by Edwina Gibbs)